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Item 2.0 Budget Meeting memo
of clry OF Otsego MINNESOTA TO: Mayor and City Council FROM: Adam Flaherty, City Administrator & Finance Director DATE: November 23, 2020 SUBJECT: Budget Meeting 410 On Monday, Council and staff will continue the review process of the 2021 Property Tax Levy, 2021 Operating Budgets and the 2021-2030 Capital Improvement Plan. It should be noted that inclusion of a certain item within the Capital Improvement Plan does not commit final approval by the City Council. Rather, it directs City staff to plan towards and gather necessary information for an educated final approval on each respective item. Each individual item is planned, researched and brought back to the City Council for final approval when the respective purchase is ready to move forward. I have developed an outline of discussion topics below. Water and Sanitary Sewer Utility Funds Council and staff will be reviewing the following: Materials for Review and Discussion 1) Operating Budgets 2) CIP Projects Summaries 3) CIP Projects Detail (2021 Projects) 4) Source & Use Cash Flow Projections Storm Water Utility Fund Council and staff will be reviewing the following: Materials for Review and Discussion 1) Operating Budget Utility Rates I would not expect that the recommended rate increases discussed at this meeting to materially change; however, the rate increases would not be effective until March 2021. This allows staff to fully analyze the 2020 revenues before recommending adoption of the rate increases. Staff will bring forward formal action for Council consideration in February 2021. City of Otsego 113400 90th Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-9163 General Fund The City Council was originally presented in July 2020 a draft budget, a balanced budget, with both revenues and expenditures totaling $6,644,971, which was a 5.26% increase from the prior year. Throughout the budget process, City staff continues to review the expenditure budgets that were presented during budget meetings (44 - #6) for any necessary revisions. As of this meeting, the expenditure budget totals $6,631,602, a decrease of $13,369 compared to the original requested budget. The final budget will be pending any additional recommendations from City staff, and the Council's implementation choice on the Compensation Study. Those budget revisions will be reviewed with the City Council at the final budget meeting and prior to final budget adoption. Materials for Review and Discussion 1) Budget Summary Property Tax Levy The City Council approved a preliminary property tax levy of $7,828,425 in September. There have been no changes to the property tax levy since that approval. City staff will provide additional review of the 2021 property tax levy at this meeting. Materials for Review and Discussion 1) Tax Levy Calculations December 14, 2020 Meeting The City will be holding the required Truth -in -Taxation presentation during the Council meeting. This meeting is an opportunity for the public to ask questions regarding the budget and tax levy. After the presentation and public input opportunity, the City Council will need to approve a number of items: - Final Property Tax Levy for Taxes Payable 2021 - Final General Fund Budget for 2021 - Final 2021 Budgets for: o Public Utility Funds o Debt Service Funds o Special Revenue Funds - Capital Improvement Plan for 2021-2030 There are currently no additional meetings scheduled for review of the property tax levy, budgets or capital improvement plan. Staff would be seeking direction from the City Council on whether any additional meetings are necessary, or if the City Council concurs with what has been presented and reviewed thus far. City of Otsego 113400 901 Street NE, Otsego, MN 553301 Tel. (763) 441-4414 Fax (763) 441-9163 Source # Priority 2021 601 - Water Utility Water Tower #4 601-2021-01 n/a Well #3 Improvements 601-2021-02 n/a Well #2 Improvements 601-2022-01 n/a East & West System Connection 601-2023-01 n/a Well #10 - New Municipal Well 601-2023-02 n/a Well Field Study - Wells No.11-14 601-2024-01 n/a Well #8 Improvements 601-2025-01 n/a Wells No.11-14 - Site Acquisition 601-2025-02 n/a Well #6 Improvements 601-2026-01 n/a Water Treatment - Site Acquisition 601-2026-02 n/a Well #5 Improvements 601-2027-01 n/a Well #7 Improvements 601-2028-01 n/a Water Tower #3 Reconditioning 601-2028-02 n/a Water Treatment - Well House #3 601-2028-03 n/a Water Treatment - Well House #2 601-2028-04 n/a Water Treatment - Well House #4 601-2029-01 n/a Water Treatment - Well House #1 601-2029-02 n/a Wells No. 11-14 - Pipe Infrastructure 601-2030-01 n/a East & West System Trunk 601-2030-02 n/a Watermain CSAH 38 & CSAH 19 - Local Share STREET-20-04 n/a 601 - Water Utility Total • 11 111 1 111 80,375 City of Otsego Capital Impro 2021 tiv PROJECTS BY FU 2022 2023 202, 60,000 200,000 5,232,500 130,000 1,300,000 11 1 6,550,375 390,000 6,532,500 100,0 GRAND TOTAL 6,550,375 390,000 6,532,500 100,0 Source # Priority 2021 602 - Sanitary Sewer Utility East WWTF - Dewatering & 602-2020-01 n/a Chemical Stabilization West WWTF Liquids Capacity 602-2022-01 n/a Expansion Lift Station - SW Corner 602-2024-01 n/a TN1011CSAH 38 West WWTF - Access Road 602-2024-02 n/a Lift Station - NW Corner 85th 602-2028-01 n/a Street/Mason Avenue Lift Station - NW Corner 602-2030-01 n/a 0dean/CSAN 38 602 - Sanitary Sewer Utility Total City of Otsego Capital Impro 2021 tiu PROJECTS BY FU. 2022 2023 2024 11, 412, 400 16,332,891 43,7 100,000 800,01 M 7,500,000 11,412,400 16,432, 891 2,043,7 GRAND TOTAL 7,500,000 11,412,400 16,432,891 2,043,7 Capital Improvement Plan City of Otsego, Minnesota 2021 thru 2W Project # 602-2020-01 Project Name East WWTF - Dewatering & Chemical Stabilization Description Construction of a building to accommodate the solids dewatering and the addition of new lime the Justification Dewatering at the East Wastewater Treatment Facility is part of the Wastewater Master Planning Facility's onsite storage and minimizes odor potential by incorporating thickening, material stabiH The West Wastewater Treatment Facility will use this location for future solids handling as solids Expenditures 2021 2022 2023 2024 202`, Utility System 7,500,000 Total 7,500,000 Funding Sources 2021 2022 2023 2024 202° 602 - Sanitary Sewer Utility 7,500,000 Total 7,500,000 Capital Improvement Plan City of Otsego, Minnesota Project # 601-2021-01 Project Name Water Tower #4 Description I Vater Tower #4 Addition - West Public Water System 2021 thru 2W Justification A Tower addition is neccessary to provide water service, fire protection and consistant water supp a 1.5 Million Gallon Tower be centrally located to connect the Public Water Systems with servica 2020 Property Aquisition, Soil Borings, Engineering, Bid 2021 Construction Initiation, Engineering Inspection Services 2022 Construction Completion Expenditures 2021 2022 2023 Utility System 6,300,000 Total 6,300,000 2024 202' Funding Sources 2021 2022 2023 2024 202! 601 -Water Utility 6,300,000 Total 6,300,000 Capital Improvement Plan City of Otsego, Minnesota Project # 601-2021-02 Project Name Well 93 Improvements Description I .nspection, Maintenance and Equipment Replacement of Well #3 2021 thru 20� Justification Well pumps are removed from service to maintain equipment components with well videoed for it check valve and adapters. Based on video information and capacity needs redevelopment of the a, Expenditures 2021 2022 2023 2024 202' Utility System 120,000 Total Funding Sources 120,000 2021 2022 2023 2024 202' 601 -Water Utility 120,000 Total 120,000 Capital Improvement Plan City of Otsego, Minnesota Project A 601-2023-01 Project Name East & West System Connection 2021 thru 20' . Description I Trunk watermain connection between the East & West Public Water Utility System. Justification I An interconnect distribution line provides the framework for the southern portion of Otsego's Wat development and water capacity for the next leg of growth. Trunk watermain installation provi& towers and developments. The project will include Pressure Control Station(s) to ensure the corm 2021 - Design Considerations 2022 - Property Acquisition (if necessary) and Final Design 2023 - Construction Expenditures 2021 2022 2023 2024 201 Utility System 50,000 200,000 5,232,500 Total 50,000 200,000 5,232,500 Funding Sources 2021 2022 2023 2024 202! 601 -Water Utility 50,000 200,000 5,232,500 Total 50,000 200,000 5,232,500 City of Otsego Enterprise Fund Budget - 2021 Department Requests Water Utility N 49400 - Water Utility Fund Account Number Fund Department Source Account Description Actual Actual Year -to -Da, 2018 2019 2020 Revenues 601 49400 37150 WATER SALES $ 1,196,441 $ 1,184,579 $ 1,474,7 601 49400 37155 WATER SALES - IRRIGATION 169,624 156,748 220,2 601 49400 37160 WATER NSF 90 60 601 49400 31900 PENALTIES AND INTEREST 50,748 54,035 17,9 TOTAL - OPERATING 1,416,903 1,395,422 1,713,0 601 49400 33422 OTHER STATE AID GRANTS - 20,000 10,0 601 49400 33424 OTHER GRANTS - 2,500 601 49400 34109 OTHER ADMINISTRATIVE CHARGES 12,250 9,950 9,7 601 49400 34302 WATER METERS 129,457 98,181 133,2 601 49400 36100 SPECIAL ASSESSMENTS 85,555 98,101 51,1 601 49400 36210 INTEREST EARNINGS 93,239 131,689 601 49400 36213 NET CHANGE IN INVESTMENT FMV (26,795) 65,623 601 49400 36232 CAPITAL CONTRIB. DEVELOPERS 500,100 466,325 601 49400 37165 WATERTOWER RENTALS -ANTENNAS 73,287 79,076 77,4 601 49400 37170 DNR FEES FOR STATE 22,464 24,422 39,8 601 49400 38990 OTHER MISCELLANEOUS 1,233 1,725 8 601 49400 38991 REFUNDS & REIMBURSEMENTS 13,798 4,713 8 601 49400 39101 SALES OF FIXED ASSETS 4,603 - 601 49400 39250 TRANSFER IN - CAPITAL ASSETS 81,593 3,582 601 49400 39300 PROCEEDS - BONDS ISSUED - - TOTAL - NON OPERATING 990,782 1,005,887 323,0' TOTAL -REVENUES Expenses 2,407,685 2,401,309 2,036,1i 601 49400 101 FULL-TIME EMPLOYEES REGULAR 73,902 78,477 77,51 601 49400 102 WAGES - FT OVERTIME 4,789 4,830 3,8: 601 49400 104 WAGES - PT EMPLOYEES 3,224 5,815 7! 601 49400 121 PERA 5,810 6,246 6,11 601 49400 122 FICA AND MEDICARE 5,986 6,493 5,9, 601 49400 130 OTHER EMPLOYER PAID INS 10,625 11,961 12,6: 601 49400 150 WORKERS COMPENSATION 3,307 3,600 6,4- 601 49400 191 GERF PENSION EXPENSE 1,408 1,455 TOTAL - PERSONAL SERVICES 109,050 118,876 113,3? 601 49400 201 OFFICE SUPPLIES AND EXPENSES 3,630 4,528 4,5( 601 49400 2.02 FUEL 3,029 3,216 601 49400 206 POSTAGE 6,233 6,331 8,0! 601 49400 210 OPERATING SUPPLIES 1,224 2,561 2,81 601 49400 216 CHEMICAL SUPPLIES 95,980 78,242 91,01 601 49400 220 REPAIRS/MAINT SUPPLIES 16,686 25,348 9,9: 601 49400 225 UNIFORMS/CLOTHING ALLOWANCE 1,140 1,548 6: 601 49400 227 SAFETY SUPPLIES 1,534 185 4: 601 49400 228 UTILITY SYSTEM SUPPLIES 119,621 150,059 100,41 601 49400 240 SMALL TOOLS/EQUIPMENT 6,366 4,326 2,1: 601 49400 298 W/S FLEET EXPENSES 1,572 2,446 TOTAL - SUPPLIES 257,015 278,791 220,07, X:\Budget\2021\Utility Funds\2021 UTILITY BUDGETS INPUT City of Otsego Enterprise Fund Budget - 2021 Department Requests Water Utility 49400 - Water Utility Fund Account Number Fund Department Source Account Description 601 49400 301 LEGAL SERVICES 601 49400 302 ENGINEERING FEES 601 49400 303 PLANNING FEES 601 49400 306 PERMITS & FEES 601 49400 315 GIS SERVICES 601 49400 320 TELEPHONE 601 49400 321 MILEAGE/TRAVEL 601 49400 322 UTILITIES 601 49400 350 PRINT & PUBLISHING 601 49400 355 DUES & MEMBERSHIPS 601 49400 360 EDUCATION/TRAINING/CONFERENCES 601 49400 361 LIABILITY AND PROPERTY INSURAN 601 49400 390 CONTRACTED SERVICES 601 49400 410 RENTALS 601 49400 437 BANK SERVICE CHARGES TOTAL - SERVICES & OTHER CHARGES 601 49400 500 CAPITAL OUTLAY (GENERAL) 601 49400 501 EQUIPMENT 601 49400 510 LAND ACQUISITIONS/EASEMENTS 601 49400 530 IMPROVEMENTS OTHER THAN BLDG 601 49400 550 MOTOR VEHICLES 601 49400 590 REHABILITATION & REPLACEMENT 601 49400 599 CAPITALIZED ASSET OFFSET TOTAL - CAPITAL OUTLAY 601 49400 420 DEPRECIATION 601 49400 720 OPERATING TRANSFERS TOTAL -OTHER TOTAL -EXPENSES NET INCOME / (LOSS) Actual Actual Year -to -Da 2018 2019 2020 - 225 5,8 37,175 158,127 197,6 200 875 9 31,274 41,081 30,2 3,339 1,338 3 3,970 3,818 3,0 72 278 1 101,180 81,434 81,7 88 88 426 431 5 1,375 2,268 1,1 10,119 10,204 18,8 69,602 65,716 62,9 1,465 1,882 1,6 9,725 10,324 8,1 270,011 378,089 413,2 419 9,540 1,5 12,220 87,487 - - 57,5 129,779 104,165 1,946,1 35,959 - 10,7 (200,143) (122,865) (21,766) 78,327 2,015,9 545,150 592,967 143,380 144,989 98,6 688,530 737,956 98,& 1,302,839 1,592,038 2,861,11 $ 1,104,846 $ 809,272 $ (825,0; XABudget\2021\Utility Funds\2021 UTILITY BUDGETS INPUT City of Otsego Enterprise Fund Budget - 2021 Detail of Line Item Requests Water Utility ,M u Requested Budget Budget Account No. & Description 2020 2021 Item Detail / Description $ 7,500 90,000 12,000 109,500 $ 15,000 15,000 $ 1,200 450 150 150 1,950 $ 18,000 96,000 104,140 218,140 $ 7,875 Fluoride 94,500 Polyphosphate 12,600 Chlorine 114,975 $ 15,000 lCorrective Maintenance Items (Ex. Chemical Pumps, Valves, Hydrant Pa 3,500 1 Dehumidifier for Well House #2 $ 1,400 Clothing Allowance = $400 x 7 Operators (50% Allocation) 525 Boot Allowance = $150 x 7 Operators (50% Allocation) 75 Clothing Allowance = $150 x 1 Seasonal Operators (50% Allocation) 75 Boot Allowance = $150 x 1 Seasonal Operators (50% Allocation) 2,075 $ 18,000 General Water Engineering - Hakanson Anderson - Exploratory Well & New Well Design - KLM - Water Tower #2 Reconditioning - Construction Management & O 600,000 Hakanson Anderson - Water Tower #4 Design 95,490 KLM - Water Tower #4 - Construction Management & Observation 6,000 KLM - Water Tower #2 and Water Tower #3 Inspection Services 10,000 Well #10 - Exploratory Well Preparations 729,490 $ 39,852 $ 10,000 400 50,252 $ 1,240 2,040 450 360 210 4,300 42,768 Minnesota Department of Health T 10,000 DNR - Water Usage 400 Tier II Permits (4 C@ $100) 53,168 9.72 at 4.400 Accounts $ 880 Employee Cell Phones ($30 x 7) + Replacement Phones ($1,000) - Alloca 2,040 Centuryl-ink Internet+ Phone Lines at Facilities ($170 Per Month) 240 Answering Service ($40 Monthly) - Allocated 50% 360 Land Line Telephone Service ($30 Monthly) 150 Tablet's Data Plan ($25 x 2) - Allocated 25% 175 WIN-911 Remote Monitoring Mobile Application - Allocated 25% 750 Charter Communications - Internet and Phone Services - ($125 Per Mon 4,595 XABudget\2021\Utility Funds\2021 UTILITY BUDGETS INPUT City of Otsego i Enterprise Fund Budget - 2021 Detail of Line Item Requests Water Utility Requested Budget Budget Account No. & Description 2020 2021 Item Detail / Description $ 125 275 65 465 $ 443 2,100 2,543 $ 50,000 50,000 $ 125 Minnesota Municipal Utilities Association - Allocated 25% 275 Minnesota Rural Water Association 65 Suburban Utility Superintendent's Association - Allocated 50% 465 $ 450 Minnesota Municipal Utilities Association - Citywide Safety Training (81 2,100 Operator Certification Licensing and Training ($350 x 6 Operators) 1,250 Huel-ife - Leadership Development Program - Allocated 50% 3,800 $ 51,931 Locates (Hakanson) - Based on 2018 - 2020 YTD Monthly Average + 5% 3,047 Locates (Gopher One) - Based on 2018 - 2020 YTD Monthly Average + 5 12,000 Electrical Maintenance 2,500 Itron Service Agreement 3,500 Neptune Service Agreement 2,900 Security Monitoring (3 Water Towers + Booster Station) + Parts & Main' 2,000 Lab Testing - Pavement Management & Lawn Services - Spraying 5,000 Equipment inspections/testing - Generator/ Meters/RPZ 15,000 Distribution Repairs / Watermain Leaks 1,200 Mechanical - Heating & Air Conditioning 500 VFD Inspections & Preventative Maintenance 300 800Mhz Infrastructure fees ($100 per radio) Wright County - Utility Rate Study (Estimate from Ehlers) 35,000 Water Meter Change -Out Project (500 Meters at $70 per meter) 5,000 Fire Hydrant Painting (100 Hydrants) 22 Rounding Contingency+ Inflationary Factor 139,900 $ 5,604,510 Water Tower #4 - CIP Amount; less Engineering from Object #302 120,000 Well No. 3 Improvements 50,000 East & West Water System Connection - Preliminary Design & Planning 51774,510 1 $ 50,000 (Ongoing investment for costs of R&R - Anticipated from Water Master F XABudget\2021\Utility Funds\2021 UTILITY BUDGETS INPUT City of Otsego Utility Rate Study Base Model 1 Rates Inflation 2 Revenue growth assumption - non -usage 3 Investment income yield 4 Expense growth - general and administrative 5 Expense growth - contractual 6 Expense growth - non personnel 7 8 9 Beginning net assets 10 11 Operating Revenues 12 Water Sales 13 Sewer Charges 14 Storm Water charges 15 Sales to Other Cities (Sewer Only) 16 Revenue Due to Growth 17 Total Operating Revenues 18 19 Operating Expenses 20 Personal Services 21 Supplies 22 Insurance 23 Utilities 24 Services and Other Charges 25 Depreciation 26 Total Operating Expenses 27 28 Net Operations 29 Non operating revenues (expenses) 30 Antenna Rental 31 Property Taxes 32 Special Assessments 33 Investment Earnings 34 Sale of Capital Assets 35 Miscellaneous Revenue 36 Interest and Fiscal Agent Fees 37 Interest Savings (2010C) 38 Connection Fees 39 Capital Contributions - Developer Assets 40 Capital Contributions - Governmental Funds 41 Transfers in/(out) 42 Total non operating revenue (expenses) 43 44 Net increase (decrease) in resources 45 Prior Period Adjustment 46 Ending net assets 47 Water Fund ActualBudget Budget 2017 2018 2019 2020 2021 2 1 6.00% 6. 2.00% 2. 1.00% 1.00% 1. 3.00% 3. 3.00% 3. 2.00% 2. 12,782,420 14,930,624 16,933,873 18,863,472 20,401,562 21,236,, 1,459,868 1,666,629 1,626,076 1,621,386 1,712,337 1,805" 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 58,095 83,1 1,459,868 1,666,629 1,626,076 1,621,386 1,770,432 1,888; 104,860 109,051 118,877 142,576 167,962 173,1 203,591 257,015 278,790 266,143 271,466 276,1 9,836 10,119 10,204 10,225 10,430 10,E 83,155 105,150 85,252 88,000 89,760 91,! 152,230 153,930 360,960 394,115 197,854 203,- 506,191 545,149 592,967 668,100 854,868 875,- 1, 059, 863 1,180,414 1,447, 050 1,569,159 1,592,339 1,631,1 400,005 486,215 179,026 52,227 178,092 256,E 67,215 73,287 79,076 82,400 82,400 82,, 0 0 0 0 0 0 0 0 29,677 63,909 62,, 77,866 117,691 325,632 82,776 66,378 49,E 0 4,603 0 0 0 2,044 15,031 28,938 123,552 15,338 15, (317„674) (288,071) (282,888) (2,10,258) (187„578) ('144,' 26,( 1,036,919 1,062,360 1,181,077 1,278,165 529,159 534,: 936,570 500,100 466,325 150,000 150,000 150,( 0 81,593 3,582 0 0 (54„741) (49„560) (51„169) (50,449) (62,450) (64,,� 1,748,199 1,517,034 1,750,573 1,485,863 657,156 712,' 2,148,204 2,003,249 1,929,599 1,538,090 835,248 969,; 14930,624 16,933,873 18,863,472 1 20,401,562 21,236,810 22,206,1 10/1/2020 Page 5 - City of Otsego Utility Rate Study Base Model 1 Rates Inflation 2 Revenue growth assumption - non -usage 3 Investment income yield 4 Expense growth - general and administrative 5 Expense growth - contractual 6 Expense growth - non personnel 7 8 9 Beginning net assets 48 CIP Funding 49 (Acquisition) disposition of Capital Assets 50 PFA Loan Proceeds 51 Bond Proceeds Term Rate 52 PFA P&I - Future 53 Bond P&I - Future 20 1.5% 54 Bond P&I - Future 15 2.0% 55 Bond P&I - Future 30 2.5% 56 Bond P&I - Future 15 2.5% 57 Bond P&I - Future 30 3.0% 58 Bond P&I - Future 15 2.0% 59 Bond P&I - Future 10 2.5% 60 Bond P&I - Future 20 2.0% 61 Bond P&I - Future 25 4.0% 62 Bond P&I - Future 25 4.0% 63 Bond P&I - Future 20 2.0% 64 Bond Prin - Existing 65 66 Beginning Cash 67 Add net operations (line 24) 68 Add back depreciation (line 21) 69 Add net non operating (line 33) 70 Add capital and bond (lines 40-48) 71 Net change in balance sheet items 72 Prior period adjustment (line 42) 73 Ending Cash 74 75 Ending net assets 76 77 78 Target minimum working capital (note 2) 79 Actual working capital -cash balance 80 Over (Under) target working capital Water Fund ActualBudget Budget 020 6.00% 6.1 2.00% 2.1 1.00% 1.00% 1.1 3.00% 3.1 3.00% 3.1 2.00% 2.1 12,782,420 14,930,624 16,933,873 18,863,472 20,401,562 21,236,1 (1,665,460) (241,135) (144,145) (3,005,330) (7,000,803) (686, 0 0 0 0 0 0 0 0 0 4,500,000 0 (350,: (732,600) (766„800) (1,631,486) (840,600) (867,600) (918ut 7,879,742 7,211,688 8,007,602 8,277,578 6,637,838 4,959,! 400,005 486,215 179,026 52,227 178,092 256, , 506,191 545,149 592,967 668,100 854,868 875,, 1,748,199 1,517,034 1,750,573 1,485,863 657,156 712,f (2,398,060) (1,007,935) (1,775„631) (3,845,930) (3,368,403) (1,954,( (924,389) (744,548) (476,959) 0 0 0 (1) 0 0 0 7,211,688 8,007,602 8,277,678 6,637,838 4,969,662 4,850,t 14,930,624 16,933,873 18,863,472 20,401,562 21,236,810 22,206,1 1,296,732 2,221,693 1,564,125 1,652,180 2,064,384 2,120,( 7,211,688 8,007,602 8,277,578 6,637,838 4,959,552 4,850,( 5,914,957 5,785,909 6,713,453 4,985,659 2,895,167 2,730,C 10/1/2020 Page 6 - City of Otsego Enterprise Fund Budget - 2020 ff Department Requests �z Sanitary Sewer Utility 49450 - Sanitary Sewer Utility Fund Account Number Actual Actual Year Fund Department Source Account Description 2018 2019 Revenues 602 49450 37200 SEWER SALES $ 1,847,960 $ 2,155,268 $ 602 49450 31900 PENALTIES AND INTEREST 73,442 91,420 602 49450 34000 CHARGES FOR SERVICES - - TOTAL - OPERATING 1,921,403 2,246,688 602 49450 36200 MISCELLANEOUS REVENUES 1,502 - 602 49450 36210 INTEREST EARNINGS 25,784 28,289 602 49450 36213 NEY CHANGE IN INVESTMENT FMV (7,410) 14,097 602 49450 36232 CAPITAL CONTRIB. DEVELOPERS 412,010 675,800 602 49450 38991 REFUNDS & REIMBURSEMENTS 9,981 8,000 602 49450 39101 SALES OF FIXED ASSETS 3,281 - 602 49450 39250 TRANSFER IN - CAPITAL ASSETS 86,198 11 602 49450 39300 PROCEEDS - BONDS ISSUED - - ` TOTAL - NON OPERATING 531,347 726,198 TOTAL -REVENUES 2,452,750 2,972,885 i Expenses 602 49450 101 FULL-TIME EMPLOYEES REGULAR 221,705 235,431 602 49450 102 WAGES - FT OVERTIME 14,368 14,490 602 49450 104 WAGES - PT EMPOYEES 9,672 17,444 602 49450 121 PERA 17,429 18,739 602 49450 122 FICA AND MEDICARE 17,958 19,480 602 49450 130 OTHER EMPLOYER PAID INS 31,874 35,881 602 49450 150 WORKERS COMPENSATION 9,920 10,802 602 49450 191 GERF PENSION EXPENSE 4,218 4,366 TOTAL - PERSONAL SERVICES 327,144 356,633 602 49450 201 OFFICE SUPPLIES AND EXPENSES 4,454 5,056 602 49450 202 FUEL 9,134 11,256 602 49450 206 POSTAGE 6,240 6,184 602 49450 210 OPERATING SUPPLIES 17,765 18,954 602 49450 216 CHEMICAL SUPPLIES 24,464 32,625 602 49450 220 REPAIRS/MAINTSUPPLIES 89,555 102,152 602 49450 225 UNIFORMS/CLOTHING ALLOWANCE 2,010 2,489 602 49450 227 SAFETY SUPPLIES 2,679 106 602 49450 240 SMALL TOOLS/EQUIPMENT 6,875 4,227 602 49450 298 W/S FLEET EXPENSES 4,716 7,339 TOTAL -SUPPLIES 167,893 190,387 602 49450 301 LEGAL SERVICES - - 602 49450 302 ENGINEERING FEES 77,616 1,217,884 602 49450 303 PLANNING FEES 200 100 602 49450 306 PERMIT & FEES 7,350 9,830 602 49450 315 GIS SERVICES 9,416 4,661 602 49450 320 TELEPHONE 7,056 6,526 X:\Budget\2021\Utility Funds\2021 UTILITY BUDGETS INPUT City of Otsego Enterprise Fund Budget -2n2O Department Requests Sanitary Sewer Utility 49450 Sanitary Sewer Utility Fund Account Number Actual Actual Yea/ Fund Department Source Account Description 3018 2019 502 49450 321 MILEAGE/TRAVEL I86 418 602 49450 922 UTILITIES 2I2,760 I98'581 602 49450 925 GARBAGE SERVICE 17,079 20'3I6 602 49450 350 PR|NT&PUBL|SH|NG 168 88 602 49450 355 DUES &MEMBERSHIPS 402 419 602 49450 360 EDUCATION/TRAINING/CONFERENCES 2,494 3'707 602 49450 361 LIABILITY AND PROPERTY |NSURAN 33,128 34'711 602 49450 390 CONTRACTED SERVICES 138,935 I50'907 602 49450 402 REPA|KS/N1A|NTBU|LD|N55 - 002 49450 410 RENTALS 1,465 I,882 602 49450 419 8030L|D3HAUL|NG 37'044 42,852 602 49450 437 BANK SERVICE CHARGES 29175 30970 TOTAL - SERVICES @ OTHER CHARGES 5 002 48450 500 CAPITAL OUTLAY (GENERAL) 1,257 753 602 49450 501 EQUIPMENT 22,890 38'409 502 49450 530 IMPROVEMENTS OTHER THAN BLDG 116,108 135'147 / 602 49450 550 MOTOR VEHICLES 107,880 602 49450 590 REHABILITATION &REPLACEMENT 38,425 49,500 602 49450 599 CAPITALIZED ASSET OFFSET TOTAL -CAPITAL OUTLAY 1844e 602 49450 602 49450 602 49450 420 DEPRECIATION 620 FISCAL AGENT FEES 720 OPERATING TRANSFERS TOTAL - EXPENSES NET INCOME / (LOSS) 961119 988,308 ' 3 XABudget\2021\Uti|hyFundo\2021 UTILITY BUDGETS INPUT City of Otsego Enterprise Fund Budget - 2021 Detail of Line Item Requests qq ' Sanitary Sewer Utility Budget Account No. & Description 2020 $ 24,000 1,000 25,000 $ 30,000 14,000 15,000 5,000 64,000 $ 15,000 15,000 7,000 30,000 5,000 9,000 5,500 5,000 91,500 $ 1,200 450 150 150 1,950 $ 25,000 16,018 1,036,700 36,500 782 50,000 1,165,000 $ 5,900 1,450 7,350 $ 3,720 2,040 450 960 630 XABudget\2021\Utility Funds\2021 Requested Budget 2021 Item Detail / Description 1 $ 24,000 lFacility Operations & Preventative Maintenance Supplies 1,000 lCollection System / Lift Stations Operations & Maintenance Supplies $ 30,000 Ferric Chloride - Phosphorous Removal 15,000 Polymer - Belt Thickening Process 30,000 Lime - Solids Processing 10,000 Polymer - Solids Processing 85,000 $ 15,000 East Wastewater Treatment Faciltiy Corrective Maintenance 15,000 West Wastewater Treatment Facility Corrective Maintenance 8,000 Lift Stations Corrective Maintenance 10,000 Collection System Corrective Maintenance (Ex. Chimney Replacements) - Equipment + Components Maintenance - Drain Lift Station East WWTF 17,665 West WWTF - Odor Control Media Exchange - West Wastewater Treatment Facility - Influent Sampler 5,000 Landscaping & Screening 10,000 Ultraviolet Bulbs 80,665 $ 1,400 Clothing Allowance = $400 x 7 Operators (50% Allocation) 525 Boot Allowance = $150 x 7 Operators (50% Allocation) 75 Clothing Allowance = $150 x 1 Seasonal Operators (50% Allocation) 75 Boot Allowance = $150 x 1 Seasonal Operators (50% Allocation) 2,075 $ 25,000 General Sewer Engineering (Permit Review, Odor Mitigation, Instrumentation) - Hakanson Anderson - Lift Station #7 Design & Construction Oversight 600,000 AE2S - East Solids Project Design & Construction Management and Oversight - Hakanson Anderson - Collection System Comprehensive Plan - Rounding Contingency + Inflationary Factor 2,291,000 West WWTF Liquid Capacity Expansion - Preliminary Design 2,916,000 $ 5,900 MPCA -Municipal Permit Annual Fee-EastWWTF 1,450 MPCA- Municipal Permit Annual Fee - West WWTF 7,350 $ 2,640 Employee Cell Phones ($30 x 7) + Replacement Phones ($1,000) - Allocated 75% 2,040 CenturyLink Internet + Phone Lines at Facilities ($170 Per Month) 240 Answering Service ($40 Monthly) - Allocated 50% 960 Land Line Telephone Service ($80 Monthly) 450 Tablet's Data Plan ($25 x 2) - Allocated 25% 525 WIN-911 Remote Monitoring Mobile Application -Allocated 25% 750 Charter Communications - Internet and Phone Services - ($125 Per Month) Alloc 7,605 City of Otsego Enterprise Fund Budget - 2021 Detail of Line Item Requests Sanitary Sewer Utility Requested Budget Budget Account No. & Description 2020 2021 Item Detail / Description $ 1,329 2,100 3,429 $ 50,000 50,000 $ 200,000 200,000 $ 1,350 Minnesota Municiapl Utilities Association - Citywide Safety Training (8 Total Visi 2,100 Operator Certification Licensing and Training ($350 x 6 Operators) 1,250 Huel-ife - Leadership Development Program - Allocated 50% 4,700 $ 45,000 East & West WWTF Permit Required Certified Lab Analysis 51,931 Locates (Hakanson) - Based on 2018 - 2020 YTD Monthly Average + 5% 3,047 Locates (Gopher One) - Based on 2018 - 2020 YTD Monthly Average + 5% 12,000 Electrical 1,700 Security Monitoring (2 WWTF) + Parts & Maintenance 2,200 Lawn Services - Spraying 4,500 Equipment inspections / Testing - Generators 5,000 Collection System Repairs 4,000 Mechanical - Heating & Air Conditioning - Utility Rate Study (Estimate from Ehlers) 300 800Mhz Infrastructure fees ($100 per radio) Wright County - Biosolids Material - Trucking & Landfill Tipping Fees 22 Rounding Contingency + Inflationary Factor 1,000 Video Camera Services - Inspect Sewer Lines for Grease 2,000 Meter Calibrations 2,600 Janitorial Services at East and West WWTF 135,300 $ 19,800 Biosolids Land Application 27,000 Material Transport - West Digester Material to East WWTF 55,200 Material Transport & Processing - West Digester Material to Big Lake Facility 42,500 Landfill Disposal - East WWTF Biosolids Material 13,000 30 Yard Containters 157,500 $ 172,000 Ongoing investment for costs of R&R as identified in Wastewater Treatment Ma 29,000 Grenin's Mississippi Hills (GMH) Lift Station Panel 24,000 West WWTF - RAS Pump 225,000 XABudget\2021\Utility Funds\2021 UTILITY BUDGETS INPUT City of Otsego Utility Rate Study Base Model 1 Rates Inflation 2 Revenue growth assumption - non -usage 3 Investment income yield 4 Expense growth - general and administrative 5 Expense growth - contractual 6 Expense growth - non personnel 7 8 9 Beginning net assets 10 11 Operating Revenues 12 Water Sales 13 Sewer Charges 14 Storm Water charges 15 Sales to Other Cities (Sewer Only) 16 Revenue Due to Growth 17 Total Operating Revenues 18 19 Operating Expenses 20 Personal Services 21 Supplies 22 Insurance 23 Utilities 24 Services and Other Charges 25 Depreciation 26 Total Operating Expenses 27 28 Net Operations 29 Non operating revenues (expenses) 30 Antenna Rental 31 Property Taxes 32 Special Assessments 33 Investment Earnings 34 Sale of Capital Assets 35 Miscellaneous Revenue 36 Interest and Fiscal Agent Fees 37 Interest Savings (2010C) 38 Connection Fees 39 Capital Contributions - Developer Assets 40 Capital Contributions - Governmental Funds 41 Transfers in/(out) 42 Total non operating revenue (expenses) 43 44 Net increase (decrease) in resources 45 Prior Period Adjustment 46 Ending net assets 47 Sewer Fund ActuV-1m Budget Budget 0, 10.00% 1 2.00% 1.00% 1.00% 3.00% 3.00% 2.00% 17,102,274 19,413,816 22,402,016 26,731,893 28,704,548 29,94' 1,737,618 1,921,402 2,246,688 2,440,286 2,677,787 2,93t 23,225 2: 50,844 11' 1,737,618 1,921,402 2,246,688 2,440,286 2,751,856 3,07( 314,583 327,144 356,633 427,724 503,890 51t 134,062 167,892 190,388 220,953 525,206 53E 31,836 33,128 34,711 34,246 35,273 3- 212,690 236,895 225,323 203,000 207,060 2 1 ' 307,661 322,901 302,300 1,452,134 401,729 41z 912,688 961,119 988,308 1,469,969 1,544,667 1,87 1 1,913,520 2,049,079 2,097,663 3,808,026 3,217,825 3,59f (175,902) (127,677) 149,025 (1,367,740) (466,970) (51E 0 0 0 0 0 0 0 0 0 0 0 0 0 64,183 198,231 19C 74,377 140,182 411,903 98,238 96,773 20E 0 3,281 0 0 6,449 11,483 8,000 0 0 (564,475) (5111,991) (502,773) (373,792) (333,472) (25E 44 2,540,120 3,132,994 3,749,611 3,553,113 1,749,730 1,767 551,275 412,010 675,800 150,000 150,000 15C 20,643 86,198 11 0 0 (140,945) (158,280) (161,700) (151,347) (155,887) (16C 2,487,444 3,115,877 4,180,852 3,340,395 1,705,375 1,944 2,311,542 2,988,200 4,329,877 1,972,655 1,239,405 1,425 19,413,816 22,402,016 26,731,893 28,704548 1 29,943953 1 31,369 10/1/2020 Page 16 - City of Otsego Utility Rate Study Base Model 1 Rates Inflation 2 Revenue growth assumption - non -usage 3 Investment income yield 4 Expense growth - general and administrative 5 Expense growth - contractual 6 Expense growth - non personnel 7 8 9 Beginning net assets 48 CIP Funding 49 (Acquisition) disposition of Capital Assets 50 PFA Loan Proceeds 51 Bond Proceeds Term Rate 52 PFA P&I - Future 53 Bond P&I - Future 20 1.5% 54 Bond P&I - Future 15 2.0% 55 Bond P&I - Future 30 2.5% 56 Bond P&I - Future 15 2.5% 57 Bond P&I - Future 30 3.0% 58 Bond P&I - Future 15 2.0% 59 Bond P&I - Future 10 2.5% 60 Bond P&I - Future 20 2.0% 61 Bond P&I - Future 25 4.0% 62 Bond P&I - Future 25 4.0% 63 Bond P&I - Future 20 2.0% 64 Bond Prin - Existing 65 66 Beginning Cash 67 Add net operations (line 24) 68 Add back depreciation (line 21) 69 Add net non operating (line 33) 70 Add capital and bond (lines 40-48) 71 Net change in balance sheet items 72 Prior period adjustment (line 42) 73 Ending Cash 74 75 Ending net assets 76 77 78 Target minimum working capital (note 2) 79 Actual working capital -cash balance 80 Over (Under) target working capital Sewer Fund ActualBudget Budget 0 0. 1000% 1 f 2.00% 1.00% 1.00% 3.00% 3.00% 2.00% 17,102,274 19,413,816 22,402,016 26,731,893 28,704,548 29,94i (148,864) 0 (452,117) 0 (1,205,108) 0 (19,266,448) 17,273,277 (2,987,908) (13,30-i 0 0 0 0 13,262,400 (377,056) (1,01' 0 (33'' (1„302,400) (1,363,200) (2„900,420) (1,494,400) (°1,542,400) (1,632 6,663,215 7,876,688 9,288,707 9,823,772 9,677,303 20,66E ('175,902) (127,67.7) 149,025 (1,367,740) (465„970) (51E 912,688 961,119 988,308 1,469,969 1,544,667 1,877 2,487,444 3,115,877 4,180,852 3,340,395 1,705,375 1,944 (1„451,264) (1,815,317) (4„105,528) (3„487,571) 8,355,036 (16„282 (559,493) (721,983) (677,592) (101„522) (150,000) (15C 0 0 0 0 0 °7,876,688 9,288,707 9,823,772 9,677,303 20,666411 7,537 19,413,816 22,402,016 26,731,893 1 28,704,548 29,943,953 31,369 2,319,960 3,924,960 2,543,232 3,446,413 3,572,473 3,82E 7,876,688 9,288,707 9,823,772 9,677,303 20,666,411 7,537 5,556,728 5,363,748 7,280,541 6,230,890 17,093,938 3,711 10/1/2020 Page 17 - City of Otsego Storm Water Utility Fund Budget - 2021 Department Requests �a 49490 - Storm Water Utilitv Fund (Out-of-Distr Account Number Fund Department Source Account Description Revenues 220 49490 31010 CURRENT AD VALOREM TAXES TOTAL- OPERATING 220 49490 36210 INTEREST EARNINGS 220 49490 36213 NET CHANGE IN INVESTMENT FMV TOTAL- NON OPERATING TOTAL - REVENUES Expenses 220 49490 292 CULVERTS TOTAL - SUPPLIES 220 49490 301 LEGAL SERVICES 220 49490 302 ENGINEERING FEES TOTAL - SERVICES & OTHER CHARGES 220 49490 750 TRANSFER OUT - CAPITAL ASSETS TOTAL -OTHER TOTAL -EXPENSES Actual Actual 2018 2019 $ 26,000 $ 30,000 $ 26,000 30,000 15 552 (4) 275 11 827 26,011 30,827 - 14,390 - 14,390 1,266 4,769 1,266 4,769 114,655 - 114,655 - 115,921 19,159 NET INCOME / (LOSS) $ (89,910) $ 11,669 $ City of Otsego p' ! Storm Water Utility Fund Budget - 2021 Department Requests 11, Account Number 49490 - Storm Water Utility Fund (In-Distri Fund Department Source Account Description Revenues 222 49490 222 49490 TOTAL - OPERATING 222 49490 222 49490 222 49490 222 49490 222 49490 TOTAL - NON OPERATING Expenses 222 49490 TOTAL - PERSONAL SERVICES 222 49490 TOTAL - SUPPLIES 37500 STORMWATER UTILITY CHARGES 31900 PENALTIES AND INTEREST 36100 SPECIAL ASSESSMENTS 36210 INTEREST EARNINGS 36213 NET CHANGE IN INVESTMENT FMV 36232 CAPITAL CONTRIB. DEVELOPERS 39250 TRANSFER IN - CAPITAL ASSETS TOTAL- REVENUES 119 PAYROLL ALLOCATION 220 REPAIRS/MAINT SUPPLIES 222 49490 301 222 49490 302 222 49490 303 222 49490 315 222 49490 355 222 49490 360 222 49490 390 222 49490 441 TOTAL - SERVICES & OTHER CHARGES LEGAL SERVICES ENGINEERING FEES PLANNING FEES GIS SERVICES DUES & MEMBERSHIPS EDUCATION/TRANING/CONFERENCE CONTRACTED SERVICES LICENSES, TAXES & FEES 222 49490 510 LANDACQUSITION/EASEMENTS TOTAL - CAPITAL OUTLAY 222 49490 420 DEPRECIATION TOTAL -OTHER TOTAL -EXPENSES NET INCOME / (LOSS) Actual Actual 2018 2019 $ 67,993 $ 72,056 $ 2,017 2,171 70,010 74,227 34,906 35,145 4,140 6,966 (1,190) 3,471 393,330 470,411 1,472,632 517,302 1,903,818 1,033,296 1,973,828 1,107,523 6,606 25,748 6,606 25,748 - 2,122 2,122 10,895 14,870 320 - 760 783 750 - - 1,784 2,753 728 15,478 18,165 246 - 246 - 47,444 57,969 47,444 57,969 69,773 104,005 $ 1,904,055 $ 1,003,518 $ City of Otsego General Fund Budget - 2021 Requested Budget Revenue & Expenditure Summary Description Revenues Taxes Cable Franchise Fees Licenses & Permits Intergovernmental Charges for Services Special Assessments Fines & Forfeitures Investment Interest Miscellaneous Interfund Transfers Subtotal Expenditures General Government Public Safety Public Works Culture & Recreation Economic Development Interfund Transfers Subtotal Requested Actual Actual Year -to -Date Budget Budget 2018 2019 2020 2020 2021 $ 3,992,749 $ 4,192,198 $ 2,442,489 $ 4,494,537 $ 4,663,046 ; 139,161 13 7, 510 100,148 141,000 13 7, 000 1,672,906 1,699,879 2,242,368 1,086,220 1,202,010 78,437 88,328 1,393,380 75,000 84,500 313,583 308,290 233,839 202,615 198,515 6,403 5,703 2,847 4,600 3,100 25,616 26,488 15,694 24,000 24,000 45,682 147,940 1,265,444 83,000 83,000 21,169 49,309 15,562 - - 159,840 171,900 201,796 201,700 249,800 6,455,546 6,827,546 7,913,567 6,312,672 6,644,971 1,188, 216 1,215,969 1,243,774 1,462,349 1,547,670 2,168,187 2,379,438 2,207,667 2,609,518 2,767,810 1,170,466 1,250,720 1,082,898 1,350,556 1,424,271 644,462 707,699 651,803 764,789 780,510 113,311 114,142 646,581 125,460 124,710 948,076 971,726 - - - 6,232,717 6,639,694 5,832,723 6,312,672 6,644,971 Net Change in Fund Balance $ 222,829 $ 187,852 $ 2,080,844 $ MM Revenues HM Expenditures -,--Unassigned Fund Balance City of Otsego Property Tax Levy Calculations Payable 2021 411 Revised: November 18, 2020 Levy Description 2016 2017 2018 2019 2020 General Revenues 3,529,352 3,766,000 3,986,000 4,210,000 4,518,000 Tax Abatements 88,814 81,385 65,546 60,816 56,491 Debt Service Series 2010D & Series 2011A 225,000 225,000 215,000 205,000 195,000 Series 2010E 415,000 430,000 440,000 450,000 460,000 Series 2018A - - - 79,293 91,758 Sub -total 640,000 655,000 655,000 734,293 746,758 Capital Reserves Pavement Management 339,200 475,960 600,000 800,000 950,000 Trails Management 25,250 26,000 30,000 32,000 33,000 Parks Equipment 54,590 55,000 56,000 58,000 60,000 Capital Equipment Revolving 168,000 235,200 242,256 260,000 280,000 Fire Reserve 150,000 150,000 160,000 170,000 180,000 Storm Water 25,000 25,000 26,000 30,000 32,000 Capital Improvements - 160,200 282,500 355,000 318,000 City Buildings & Property - - - - 20,000 Sub -total 762,040 1,127,360 1,396,756 1,705,000 1,873,000 Grand Total 5,020,206 5,629,745 6,103,302 6,710,109 7,194,249 j//r/, ,i WK/1 !,, Tax Capacity 13,238,424 14,873,116 16,783,003 18,695,511 20,742,285i 0 0 0 0 0 0 Growth(/) 16.55/ 12.35/ 12.84/ 11.40/ 10.951 Net Tax Capacity 13,238,424 14,872,821 16,696,008 18,608,540 20,497,278 Growth % % % % oo 1655/ 12.35/ 12.26/ 11.46/ 10.15/ Tax Rate 37.921 37.852 36.556 36.060 35.099 „ Population 14,968 15,472 16,019 16,605 17,323 Tax Levy Per Capita 335 364 381 404 415 Taxing 2016 2017 2018 2019 2020 Authority Final Tax Rate Final Tax Rate Final Tax Rate Final Tax Rate Final Tax Rate City of Otsego 37.921 37.852 36.556 36.060 35.099 Wright County 39.970 39.599 39.946 44.273 44.421 School District 39.266 36.659 36.137 32.865 34.371 School District -RMV 19.441 19.373 19.422 19.430 29.961 Description 2017 2018 2019 2020 Median Appraised Value 198,300 217,206 220,572 247,859 ,% Less: MV Exclusion 19,393 17,691 17,389 14,933 Taxable Market Value 178,907 199,515 203,183 232,926 Tax Capacity 1,789 1,995 2,032 2,329 2017 2018 2019 2020 / �,��r'''/ �„ ✓i/i // i ii/ % � rriiri Taxing Estimated Estimated Estimated Estimated Authority Tax Tax Tax Tax City Of Otsego 677 729 733 818 Wright County 708 797 900 1,035 School District 656 721 668 801 School District - RMV 384 422 429 743 Total 2,425 2,669 2,730 3 397 Annual Increase X:\Budget\2021\Property Taxes\Tax Levy Calculations